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Posted by Asher on January 9, 2008, 10:43 am
BS"D
Pivot Point Daytrading Course
Learn to Read the Tape
and Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning and welcome back,
I'm feeling a bit better today, especially after Tuesday's
nearly PMT-perfect afternoon bounce off our R1.
Ready for Wednesday?!?
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Tuesday January 08, 2008
. . . [SNIP] . . .
4 = Strong 2-bar "P" signal off the R1. Perfect! Entry on the next
candle,
with initial stop above R1.
D = Failed test of MA. Move profit-locking stop above the MA (or
better yet,
just a drop lower, to "free trade").
E = Large red candle violates the PMT Maximum Profit Giveback rules.
Mental
stop at Giveback level.
F = Large red candle through the Close, stops at the Pivot. Per our
PMT stop
rules, move profit-locking stop above the Close.
G = Large red candle through the LowW. Our rules advise to move the
profit-locking stop above the LowW.
Note that this is also a 2-candle 123 of the Pivot. With such bloated
ABS and
a half hour before EOD Hiccup Danger Time, if still on the sidelines,
one might
call this an "S" and enter. Those already happily holding a
profitable position,
take this as an opportunity to add contracts.
H = Large red candle spikes through the S1. Per our rules, move
profit-locking
stop above the high of the candle.
J = Another 2-candle 123 of one of our Pivot Levels (S1). Bit late in
the day to
enter, but a good place to add contracts. Move profit-locking stop
above the S1.
K = Single, gigantic, red candle violates the PMT Maximum Profit
Giveback rules.
Mental stop at Giveback level.
Uh Oh! Our old friend the "lower-low-turns-white" (blue arrow).
That's a classic
Exit Now! scenario. Do it! +/- 26 points
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom left chart)
Price Action has reversed to well below the 62% Retracement Level
(dark red line).
Trading has not yet reached the old low, but it has plunged a long way
from the
Long-term high (blue line).
(Monthly, bottom right chart)
I know some folks are freaking out and calling it a market crash, but
let's step
back to a Higher Time frame and get some perspective.
The hand-drawn red bar (right edge of the tape) approximates this
month's Price
Action, and the plum line approximates the 50% (Fibonacci) Long-term
Retracement
Level.
As you can see from this vantage, although Price Action has stalled,
and even
vigorously retraced quite a lot of points, it's still pretty tough to
label this
a crash!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic010808.gif
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